More money creation doesn't necessarily mean higher consumer prices. But, if production is falling while consumers use their stimulus checks to buy food and clothing, we could see noticeable price inflation.
The oil industry became one of the main areas of malinvestment in the years of massive liquidity and low yields. This perpetuated excess capacity and kept inefficient companies unnecessarily alive.
Part of what made the Great Depression last so long was increased uncertainty about what regulation or tax the government might impose next. Today's looming threat of ongoing "shutdowns" creates a very similar situation.
Regardless of government actions, many consumers, workers, and producers may seek changes that reduce exposure to disease in the workplace. The best way to do this is through markets.
The Fed is, in effect, a lawless economic government unto itself. It is the lender of first resort, a kind of reverse pawnshop that pays top dollar for rapidly declining assets.
From trade barriers to disastrous government regulations, government intervention has crippled society's ability to respond well to the spread of disease.
After weeks of bungling, faulty tests, and policy reversals the CDC bureaucrats managed to achieve some semblance of competence. But by then they were already far behind the curve.
A healthcare system based on responsible risk management systems would provide market incentives for people to improve health while cutting costs for some needy populations.
